What Immigration is Doing to US Government?


Time: 3:12 p.m. CEST

Members of Congress would reconvene on Saturday to review possibility for a three-week version of the budget to finance the government after Congress did not succeed by Friday midnight to diminish differences on immigration and spending.

The failure to produce agreement on former President Barack Obama’s program called Deferred Action for Childhood Arrivals by midnight on Friday could leave thousands government employees on furlough if Congress fails in the weekend to reach temporary agreement only on spending.

During the voting in Congress last night, Senate Republicans failed to ensure 60 votes to break a filibuster imposed by Senate Democrats. In the late-night vote, Senate Republicans gained 50 votes in favor to 49 against the short-term spending bill that would have funded the government for 30 days. On Thursday, the House passed short-term finance bill.

What caused this?

Even though, Republicans and Democrats talked behind the scene to find solution for DACA program that the U.S. President Donald Trump canceled last year, the failure for a common language halted hopes to avoid the shutdown. Both were trying the ways to protect the dreamers and respond to Trump’s requirement for stronger border security and scrutinized process of obtaining citizenship.

To avoid looming shutdown, Trump invited Senate Democratic leader Chuck Schumer for a discussion at the White House. As Schumer left the White House on Friday and without possible agreement on prospect, Trump tweeted the deal was not possible.

Trump pointed out to Democrats and said, they “want a shutdown in order to help diminish the great success of the tax cuts, and what they are doing for booming economy.”

Vice President Mike Pence commented that Trump’s administration worked for a bipartisan deal to “strengthen our borders, end chain migration, eliminate the visa lottery, and deal compassionately with DACA.”

The White House press secretary Sarah Sanders responded with a statement blaming Democrats for putting immigrants above the government. “We will not negotiate the status of unlawful immigrants while Democrats hold our lawful citizens hostage over their reckless demands,” Sanders explained in the statement.

Immigration

Trump campaigned against immigration during his presidential campaign for 2016 Presidential elections. He used harsh language for Mexican immigrants and promised building of a wall along the U.S.-Mexico border that already exists in parts of the border.

Trump’s approach to immigration differs the way the Republican Party looked at immigration. In 2004, President George W. Bush had 44 percent of the Hispanic votes. Republican nominee Mitt Romney changed his opinion from a “pro-immigration governor” to an official who is promoting “self-deportation.” That cost him a win, as Latino-voters support for Romney was only 27 percent. Democrats use the immigration as a major issue to attract Latino voters. Loosing DACA that is now in the hands of the Supreme Court could be of bigger risk for Democrats amid next year midterm elections.

What is DACA?

DACA is program offered by previous U.S. administration for specific part of the undocumented population in the U.S. that is granting two-year status to those qualifying for the program. Immigrants who were under 31 years of age as of June 15, 2012, could apply for the program. The program offers possibility for employment, but only in the situation if the applicant receives DACA status. With the program, about 700.000 people surfaced from the shadow and registered under the program.

Who is affected?

Many of the thousands of government employees could be affected if the deal would not be reached until Monday. Depending on the internal rules of the government agencies, critical functions would continue with military, health inspectors and law enforcement officers would work without paychecks. Last shutdown of the U.S. government was in October 2013 and lasted 16 days. Even though, Republicans regain control over the Senate after midterm elections in 2014, it is unclear whether the standoff would end or continue after Monday.

References:

Sullivan, Sean, and Ed O’Keeffe. “In spending fight, Republicans embrace Trump’s hard-line stand on immigration.” washingtonpost.com, Nash Holdings LLC, wapo.st/2mWAJJq. Accessed 20 Jan. 2018.

https://www.immigrationequality.org, Immigration Equality, bit.ly/2DqVtmH. Accessed 20 Jan. 2018.

Miller, Zake, Andrew Taylor, Alan Fram, Jill Colvin, and Catherine Lucey. “US government shuts down; Dems, GOP blame each other.” https://apnews.com, Associated Press, 20 Jan. 2018, bit.ly/2DqzqwF. Accessed 20 Jan. 2018.

Shabad, Rebecca, Kathryn Watson, Jacqueline Alemany, and Rebecca Kaplam. “Government shuts down on one-year anniversary of Trump presidency.” https://www.cbsnews.com, CBS Corporation, 19 Jan. 2018, bit.ly/2DqzqwF. Accessed 20 Jan. 2018.

DeBonis, Mike, Ed O’Keefe, Erica Werner, and Elise Viebeck. “Government shuts down after Senate bill collapses, negotiations fail.” https://www.washingtonpost.com, Nash Holdings LLC, 20 Jan. 2018, wapo.st/2mWe4fg. Accessed 20 Jan. 2018

Federal Reserve Raises Interest Rate


Time: 8:04 p.m. CEST

The U.S. Federal Reserve raises the interest rates by 0.25 percentage point signaling end of the  economic recovery since the financial crisis in 2008 and progress of restoring jobs. 

The Federal Reserve announced on Wednesday, as the New York Times reports, “it would raise short-term interest rates for the first time since the financial crisis struck, a vote of confidence in the strength of the American economy at a time when much of the rest of the global economy is struggling.”

The raising of the interest rate will end a seven-year period in which the Fed kept the short-term rates near zero. “Even as it raises its benchmark interest rate by 0.25 percentage points, however, the Fed emphasized subsequent increases will come slowly,” the Times explained.

The USA Today published that, “A Federal Reserve interest rate hike today is pretty much a sure thing, as readings on inflation and jobs are headed in the right direction.” As the online edition of the USA Today writes, “in short, the reaction will be all about what the Fed says-not what it does, as a quarter-point rate hike is pretty much baked into prices already.”

“The market is betting on an 80%-plus probability the Fed will hike rates Wednesday, but futures markets are pricing in only two additional quarter-point moves next year, ” the USA Today writes.

On the same issue, Politico.com explains that the Federal Reserve’s expected interest-rate hike Wednesday has been drfated to minimize economic volatility and without political turbulence. “Federal Reserve Chair Janet Yellen, tapped last year by President Barack Obama to lead the Fed and strongly supported by the progressive wing of the Democratic Party, is expected to promise a very slow and cautious approach even as the central bank increases borrowing costs for the first time in almost a decade,” Politico.com writes.

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Saudi Arabia arrested 88 men in connection with terrorism


Time: 6:09 p.m. CEST

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